On Wednesday, oil prices went on a positive route up close to the highest level in more than two months on hopes of a coronavirus vaccine and the drawdown of US crude stockpiles.
Brent crude oil futures settled with an increase of 0.4% or 19 cents at USD43.80/barrel, after peaking in the earlier session at USD45.3/barrel. This would be Brent’s first time breaking over the USD45/barrel threshold since September.
US WTI crude settled with a jump of 9 cents at USD41.45/barrel after hitting a session high of USD43.06/barrel.
The news over the 90% effectiveness of the coronavirus vaccines developed by Pfizer Inc. and BioNTech. This news brings optimism to the oil market that the transportation fuel demand could be boosted and possibly revived.
Another factor supporting the gain yesterday was the data from a US industry group that the country’s crude inventories for the week ended November 6 were down by 5.1 million barrels to around 482 million barrels.
A Reuters poll estimated a reduction of only 913,000 barrels while the government data is delayed by a holiday and will come out on Thursday.
